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Insights > Entergy Arkansas warns of solar scammers
Entergy Arkansas warns of solar scammers
06/04/2024
As the largest solar provider and a leader in industrial-scale renewable energy in the state, Entergy Arkansas offers its customers the opportunity to participate through a variety of options in solar power generation to help meet their renewable energy objectives. Unfortunately, as the renewable industry expands, Entergy Arkansas has heard from customers and agencies like the Attorney General’s office about many scams popping up.
Net metering, when done correctly, can offer a legitimate billing arrangement that allows individuals or businesses the ability to offset part or all of their load with a private renewable facility. Net metering also enables customers to be compensated for electricity produced by those facilities that is not utilized by the customer and is fed back to utility. Please be aware, however, that some scammers may try to take advantage of customers interested in net metering by using dishonest tactics intended to push customers into less than desirable financing arrangements. For example, a very elderly customer could be sold a net metering system with long-term financing obligations that can’t be met.
Know Your Rights.
You should know that Arkansas legislators overhauled net metering laws last year by passing Act 278 during its 94th General Assembly. Under the current law, net metering is available to customers whose net metering facilities meet certain criteria. Act 278 provides protections for customers, including current and potential net metering customers, and helps to mitigate some of the cost-shifting and ensure fairness to all customers. Net metering developers are required by law to give you certain information that is essential to help you make an informed decision. In particular, you may independently confirm any representations a developer is making to you about how net metering will affect your monthly electric bill.
Most Arkansans have until Sept. 30, 2024, to install solar panels and retain the current net metering 1:1 rate structure. As this deadline approaches, many customers could be exposed to scams that may take advantage of customers feeling pressured to make a decision quickly. Entergy Arkansas wants to help customers watch out for potential scams:
Scam: A salesperson claims they represent or “are working with” Entergy Arkansas.
The truth: Entergy Arkansas does not partner with third-party solar companies for at-home solar solutions. (Some of the authorized trade allies we do partner with to provide home energy-saving products and services may also perform solar work, but they are prohibited from using their affiliation with Entergy Arkansas to solicit solar business.) If any salespeople come to your home claiming affiliations with Entergy Arkansas, you may verify they are legitimate by asking for their Entergy identification or calling 1-800-ENTERGY. However, again, if they are attempting to sell you a net metering facility, they are not affiliated with Entergy Arkansas for that sale in any way.
Scam: A salesperson insists that you sign a contract on the spot.
The truth: Customers should review the Arkansas Consumer Protection Requirements in Act 278, which include protections that allow a prospective net metering customer to have a minimum of five business days to evaluate a proposal. Additionally, the protections provide for an energy efficiency audit to be performed on the potential net metering customer's premises, and an entity selling a net metering facility must demonstrate to you that the proposed net metering facility meets all applicable safety requirements and standards. If these and other requirements are not met, customers should contact the Arkansas Attorney General’s office who has enforcement authority.
Scam: A salesperson claims you will never pay an electricity bill again after installing solar.
The truth: You will still receive electric bills after installing solar panels in large part because a net metering facility still relies on and uses the equipment that Entergy Arkansas uses to provide electric service to your premise. Electric bills for customers with solar panels can depend on several factors, like local weather conditions and the amount of electricity you use. For example, during periods of low renewable energy generation, such as at night or during cloudy weather, net metering customers still draw electricity from the grid. The meter then tracks this consumption. The consumer is billed for their energy use that is not offset by the solar. If the goal is to reduce your electric bill, energy efficiency measures may be a cost-effective way to achieve that goal.
Scam: A salesperson claims everyone will soon be required have to have solar installed on their roofs within a few years, so you should get ahead of the game.
The truth: There is absolutely no requirement of this sort. There is no law in Arkansas that requires anyone to net meter or to install solar panels (or any other kind of power generation) on their houses or real estate.
Scam: A salesperson claims you will not pay anything for solar, which pays for itself.
The truth: A net metering system may come with a lengthy financing arrangement. You may consider carefully scrutinizing any financial arrangement proposed to you and read the fine print and seek help in doing so from an independent party not affiliated with the person selling you the net metering facility. It is possible that someone may be attempting to create an arrangement that puts a lien on your home or in a financing arrangement with sub-par rates. As with any major financing decision, take your time and refuse to make any “on the spot” commitment.
Protect yourself from in-person scammers with these tips:
- Do not invite strangers into your home.
- Be especially cautious if you’re home alone.
- Remember you have the right to refuse to open your door.
- Do not sign a contract on the spot.
- Call 911 if you feel you’re in danger.
- If it feels like a scam, report it to the Arkansas Attorney General’s office.
Entergy Arkansas never calls or visits you demanding that you pay your bills on the spot to prevent your electricity from being cut off. If in doubt, call Entergy Arkansas directly at the number provided on your bill and check on the status of your account.
While some Entergy Arkansas energy efficiency contractors go door-to-door to promote energy efficiency tools, they are never authorized to try to sell you solar panels and are never working with Entergy Arkansas where they may be trying to do so. If you think this is occurring, it may likely be a scam, and we ask that you please report them to us. Entergy Arkansas representatives are required to carry official credentials, like branded uniforms and badges. If we need to access your property to provide electric service, Entergy Arkansas will attempt to call you or provide written notice. You can always contact us directly to verify whether an Entergy Arkansas service representative should be on-site.
Report scam activity to Entergy Arkansas, your bank or financial institution and the proper authorities, including the Better Business Bureau or Federal Trade Commission. Document all details, such as receipts, names, websites, phone numbers or email addresses, associated with the crime.
Your safety is our priority. Visit entergy.com/scams for additional resources on new and evolving threats.
